I am being bought out by my partner. We have been in the construction phase for the last 2 years. The business hasn't opened yet and so no income has been
generated/distributed.

As part of the proposed buyout 50% is being paid now and the remaining 50% spread over 2 years. In this scenario how is this treated in a LLC tax return?

1. Are all these return of capital - some this year and the rest spread over in 2 years?
2. If there's an interest component, how is this treated?

Thanks in advance!